Submitted by Aditya Rao on August 22, 2008 - 8:11am.
Earlier today, the Chairman of
the Tata Group made a very strong statement in a press conference: “We perceive that we may not be wanted……if
people think that we will not move out of Singur, they’re wrong. We would,
whatever be the cost.”
In Tata Motors’ long term
interests Singur has become a flash point and a hot bed for political activity.
The average Indian will however be synonymous with Singur as the chief
production facility of the World’s cheapest car. The much talked about 1 lakh
people’s car or the Nano.
This statement is the first clear
indication by Ratan Tata that he isn’t interested in dealing with the violent
politics of Singur. Ratan Tata is not the type of man who uses the media to
play around which means that today’s statement is a forecast of what WILL happen unless things change at
ground zero in Singur.
The launch of Maruti Suzuki’s
latest car, the ‘A-Star’ is an important event in the history of the company.
There are obvious questions being asked about the timing of the launch, whether
it would have been wiser to introduce a new vehicle sometime next year when
economic conditions could be better. Nonetheless it’s a bold move that is being
backed by the company. The A-Star is significant to the fortunes of the Maruti
Suzuki group because it’s an India centric car aimed at going global. 
Not everything in a bear market
needs to be a bad thing. For some it’s an excellent opportunity to enter the
stock markets especially those who have seen the Sensex scale the heights that
it had during the last few years and had desperately wished to be a part of. 
The past couple of weeks have
drastically altered stock market strategies for many companies. Most have been
aware from the month of March that their future financing questions need very
specific answers. The banking system is on shaky ground with each bank simply
refusing to lend money to a company no matter how credible or in need of
capital it is. Companies have been trying to squeeze loans out of banks and are
in returning paying ridiculously high amounts of interest in return. Some
companies are paying interest as high as 35 %.Thus many companies have decided
to sell more shares of their brands in an effort to raise funds. While this was
the right thing to do even 6 weeks ago, it isn’t anymore because the savviest
of investors are refusing to part with cash. 
It was probably the last straw
for Tata Motors when two of their security guards were beaten up by a mob .What
was worse is that this happened in the night despite heavy police presence
early on Tuesday. Both guards sustained severe injuries and are now
recuperating. Less than 24 hours after this incident the crew at the Tata
factory in Singur have been told to slowly start moving out all their manufacturing
equipment and relocate.Though no formal announcement has been made that the Tatas
have finally decided to walk out of West Bengal with their Nano, it is quite
safe to assume the same.
Tata Motors is in a mood to
dominate the Indian auto industry, at least four wheeler wise. Whether they can
upstage the Maruti group is something only time and strategy will tell. Known
as a company that makes cars for the middle income sector Tata Motors was keen
to shake off that tag aiming to diversify. The acquisition of Land Rover and
Jaguar was of little surprise.
